EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIOS
TOLL BROTHERS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
Year Ended October 31, Nine Months
------------------------------------------------------------ Ended
1994 1995 1996 1997 1998 July 31, 1999
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Earnings:
Income before income taxes and extraordinary
loss and change in accounting ....................... $56,840 $ 79,739 $ 85,793 $107,646 $134,293 $109,831
Homebuilding:
Interest expense: .................................... 20,136 22,473 24,646 29,746 36,052 28,159
Rent expense ......................................... 71 93 151 193 293 280
Amortization ......................................... 785 801 705 667 610 457
Collateralized mortgage financing:
Interest expense ..................................... 624 376 300 233 184 82
Amortization ......................................... 157 29 -- -- -- --
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$78,613 $103,511 $111,595 $138,485 $171,432 $138,809
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Fixed charges:
Homebuilding:
Interest incurred: ................................... $21,701 $ 25,780 $ 27,695 $ 35,242 $ 38,331 $ 37,390
Rent expense ......................................... 71 93 151 193 293 280
Amortization ........................................... 785 801 705 667 610 457
Collateralized mortgage financing:
Interest incurred .................................... 624 376 300 233 184 82
Amortization ......................................... 157 29 -- -- -- --
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$23,338 $ 27,079 $ 28,851 $ 36,335 $ 39,418 $ 38,209
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Ratio, including collateralized mortgage financing(1)... 3.37 3.82 3.87 3.81 4.35 3.63
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(1) For purposes of computing the ratio of earnings to fixed charges, earnings
consist of income before income taxes, extraordinary loss and change in
accounting plus interest expense and fixed charges except interest
incurred. Fixed charges consist of interest incurred (whether expensed or
capitalized), the portion of rent expense that is representative of the
interest factor, and amortization of debt discount and issuance costs.